Quarterly Newsletter

Asset Management

There are as many definitions of Asset Management as there are asset managers.  Asset management is probably one of the most necessary investment disciplines. 

The most common misconception about asset management is that it can be automated through the use of one of the countless tools available.  Those that buy into the promise of automation are usually disappointed with the results.  The reason is they fail to appreciate that asset management is dynamic and technology can not be substituted for the necessary processes.

A successful asset management implementation must start by first defining the requirements.  You need to establish a systematic process of operating, maintaining, and upgrading assets cost effectively.  The process needs to combine research and mathematical analyses with sound business practice and economic theory.  The system should be goal driven and like the traditional planning process, include components for data collection, strategy evaluation, program selection, and feedback.  The asset management model explicitly addresses integration of decisions made across all financial areas.

The purpose of asset management is to bring relevant data and analytic tools together with a systematic implementation process to ensure that the well-defined goals of the investor are attained as efficiently as possible given a certain level of available resources and risk tolerance.

“Investing is the art of the specific.”

 -Christopher Davis